Endurance eyes $1bn revenues

May tap capital markets next fiscal

MUMBAI: Pune-based Endurance Technologies aims to join the billion dollar revenue club by 2009-2010. It is also looking at tapping the capital markets next financial year to fund its growth plans.

Sunil Bedekar, chief financial officer, said, “We hope to close this fiscal with revenues of Rs 2,500-2,600 crore. In FY09, we should be a Rs 3,100-crore company. Hence, a billion dollar mark by FY10 should not be difficult. Our long term target is to be world’s largest aluminum die-cast manufacturer by 2012-2013.”

Endurance manufacturers aluminum die cast, which account for half its business, and suspension, transmission and brake parts for two (55% of revenues) and four wheelers.

Last fiscal, it raised about Rs 150 crore in private equity from Standard Chartered Bank against a 10% stake. It used the funds to seal some deals in Europe.

“This year will see some consolidation. Although we are continuously looking for opportunities, there is no acquisition target as of now. Our balancesheet size allows us to consider an up to €200 million deal,” Bedekar said.

Of the Rs 3,100 crore revenues expected next fiscal, over Rs 800 crore is likely to come from overseas, mostly European, markets.

This was almost nil five years back.

Chiefly an original equipment manufacturer supplier, Endurance is now testing the aftermarket space overseas. It has recently commissioned a plant in Thailand to manufacture suspension and braking systems.

Originally a 100% dependent on Bajaj Auto, Endurance has brought down the two-wheeler major’s contribution to its revenues to about half now. Going forward, faster growth of other businesses -Endurance is a supplier for Tata Motors’ Nano project-will bring down Bajaj Auto contribution further.

g_rabin@dnaindia.net